China’s top construction machinery firms see Q3 profit growth amid strong domestic and overseas demand

Key highlights from the Q3 financial reports of China’s three leading construction machinery companies (2024):

Overall Growth Trend: The three top machinery firms, SANY Heavy Industry, XCMG Machinery, and Zoomlion, each reported net profit growth in Q3, reflecting a positive shift in the construction machinery sector.

Excavator sales, seen as a key indicator of industry health, have shown continuous domestic growth over the past seven months. Overseas sales also saw growth in August and September.

Company Performance:

SANY Heavy Industry: Revenue grew by 19.4% year-on-year to 19.152 billion CNY, while net profit surged by 96.49% to 1.295 billion CNY. Net profit for the first three quarters rose by 19.66%.

XCMG Machinery: Although revenue decreased by 6.37% year-on-year, net profit rose by 28.28% to 1.603 billion CNY.

Zoomlion: Revenue decreased by 13.89% year-on-year, but net profit grew by 4.42% to 851 million CNY. The first three quarters showed an overseas revenue increase of 35.42%.

Market Outlook: With infrastructure growth and supportive fiscal policies, demand for construction machinery continues to strengthen. The domestic market is expected to reach its lowest point by 2024, with potential growth in equipment replacement cycles by 2025.

Stock Market Performance: As of October 31, SANY Heavy Industry, XCMG Machinery, and Zoomlion recorded stock price increases of 4.23%, 3.32%, and 2.06%, respectively, highlighting investor confidence in their growth potential.

Nov 7 2024 reported by Machinery News